In order to ensure consistency across goods and services, elasticities should always be calculated based on absolute changes in quantity demanded
Indicate whether the statement is true or false
FALSE
You might also like to view...
For most of World War II, the United States economy temporarily operated ____________ the production possibilities frontier.
Fill in the blank(s) with the appropriate word(s).
In any efficiency wage model, it must be true that
a. the marginal benefit of increased efficiency is equal to the marginal cost of higher wages. b. nominal wages are inflexible. c. disequilibrium in the labor market exists. d. all of the above. e. none of the above.
As the MPC increases, the absolute value of the tax multiplier increases.
Answer the following statement true (T) or false (F)
A personal tax cut of $50 billion will affect income differently than an increase in government spending by $50 billion because:
A. The increase in government spending will produce a political business cycle B. The increase in government spending is less expansionary than the increase in taxes C. Households may save part of the additional income from the tax cut D. Households may consume more than the additional income from the tax cut